India: FMCG manufacturers left with dilemma after government bans suffixes on ayurvedic products

India: FMCG manufacturers left with dilemma after government bans suffixes on ayurvedic products

The health ministry in India has recently decided to ban ayurvedic medicines and other products unless they adhere to strict rules on their formulation, TMC reports.

The new legislation will affect many popular products include the health supplement Chyawanprash and the bone treatment Rhumayog, and many manufacturers will be left with no choice but to rename their products. Companies marketing ostensibly ayurvedic products with added ingredients will either have to change the brand name or remove the added ingredient in order to be able to continue selling the products.

Although companies have a year to sell existing stock and amend their product names or formulations accordingly, profitability is still likely to be affected, according to sources.

Emami, through its products such as Sona-Chandi Chyawanprash, is one company likely to be affected, it is reported. TMC quotes a source as saying: "Emami will now be hit as they have no option to differentiate their products. The only option left is to increase its marketing and advertising budget to stand out".

Source: TMCnet